Basic American Foods to acquire potato products
March 16, 2010
by Eric Schroeder
WALNUT CREEK, CALIF. — Basic American Foods has reached agreement to acquire the Hungry Jack brand potato products and Idaho Spuds branded potatoes business of Orrville, Ohio-based The J.M. Smucker Co. Financial terms of the transaction, which does not include the Hungry Jack pancake mix and syrup products, were not disclosed.
“We are very excited to welcome the Hungry Jack and Idaho Spuds potato product brands into our family at Basic American Foods,” said Loren Kimura, president and chief executive officer of Basic American Foods. “We have an established history of excellence both with these products and within the potato products category.”
Privately-owned Basic American Foods, which has manufactured and co-packed Hungry Jack and Idaho Spuds for several years, also agreed to a licensing agreement with J.M. Smucker that will allow Basic American Foods to expand its retail presence. Basic American Foods’ other brands include Natures Own Potato Pearls Premium Mashed Potatoes, Golden Grill Russet Premium Hash Brown Potatoes, Potato Pearls Excel, Quick-Start Home Style Chili, and Santiago Refried and Seasoned Black Beans.
For J.M. Smucker, the divestiture continues a trend toward focusing on the breakfast category through the Smucker’s, Folgers, Dunkin’ Donuts, Pillsbury, R.W. Knudsen Family and Martha White brands.
“The Hungry Jack brand has been a part of family meals for many years and Hungry Jack pancake mixes and syrups will continue to be an important part of our leading role in the breakfast category,” said Steve Oakland, president of U.S. retail for Smucker’s, Jif and Hungry Jack. “The divestiture of this potato business allows us to better align our company’s resources while at the same time provides Basic American Foods with a product line that is a perfect strategic fit in its portfolio.”